On 13 April, 2017 – European stocks slid as banking shares tumbled

Geopolitical concerns and Donald Trump’s comments on the US dollar weighed on most global markets.
United States
Stocks fell on Thursday to close at session lows as investors dealt with the start of earnings season and intensifying geopolitical concerns. Both the Dow Jones Industrial Average and the S&P 500 index dropped 0.7% on the day, while the Nasdaq Composite slid 0.5%. For the week, the Dow Jones Industrial Average fell 1%, the S&P 500 dropped 1.1% and the Nasdaq fell 1.2%. US financial markets will be closed for Good Friday.
Weak oil prices weighed on the energy sector, while financial shares slid following earnings from major banks. Shares in J.P. Morgan, Citigroup and Wells Fargo were among the worst performers. Shares in Chevron and Caterpillar also tumbled.
Meanwhile, the US dollar remained under pressure, as President Donald Trump said that the US currency “is getting too strong” and that he would prefer the US Federal Reserve (Fed) to keep interest rates low. This statement contradicts two of his key themes on the election campaign trail. Trump had promised action against China and others he saw as currency manipulators, and said the Fed’s policy approach was keeping a lid on interest rates.
Europe
European stocks slid, driven by banks after President Donald Trump’s comments about the US dollar and interest rates. The Stoxx Europe 600 index fell 0.4% on the day and registered a loss of 0.2% for the week. This marks its first pullback in three weeks. The UK’s FTSE 100 fell 0.3% on the day and week. Equity markets will be closed on Friday and Monday for Good Friday and Easter, respectively.
Banks tumbled following Trump’s comments on the US dollar, with Credit Agricole, HSBC Holdings and Commerzbank among the leading decliners. Mining stocks were mixed, with Glencore, Rio Tinto and Anglo American among the laggards, while gold producers Fresnillo and Randgold Resources advanced.
Asia Pacific
Asian stocks started lower in thin trading on Friday amid weakness in overseas markets and persistent geopolitical uncertainty, particularly in Korea.
In Japan, the Nikkei Stock Average was down 0.3% even as the yen steadied versus the US dollar. Persistent gains for the Japanese currency have sent the country’s benchmark stock index to four-month lows this week. Chinese stocks fell as speculative funds are supposedly withdrawing from small caps, triggering broader selloff worries amid tightening regulatory pressure.
Investors also remained cautious over US trade relations with Asian economies ahead of Vice President Mike Pence’s scheduled visit to the region next week. Investors are also increasingly wary about potential tensions between North Korea and the US. While North Korean state media warned that it could use the national holiday on Saturday to deliver a show of force, reports indicate that President Trump is prepared to launch a pre-emptive strike against North Korea should they decide to conduct another nuclear weapons test this weekend.
Looking Forward
The US releases Consumer Price Index (March), Retail Sales (March) and Business Inventories (February)
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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